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London Infrastructure Plan 2050, London, United Kingdom

The first ever strategic appraisal of London’s infrastructure requirements up to 2050

Handled correctly, population growth presents an opportunity to grow London’s economic capability and competitiveness in its own terms and against international peers. This can propel London into exciting and positive new phases. But if London is to succeed, radical changes will be required. As a core enabler of growth, optimal and increased investment in infrastructure is critical.

Arup was enlisted to work with the GLA to provide an assessment of the costs associated with London’s long-term infrastructure requirements, and to provide a series of recommendations on how this infrastructure development could be funded.

Our work shone a light on the strategic requirement for a step change in the planning, funding and delivery of London’s infrastructure. Using a bespoke cost model – informed by their technical cross sector specialists – Arup calculated that the cost would exceed £1.3 trillion.

Approximately 80% of this was in the housing and transport sectors, this resulted in a funding gap of £130bn for these sectors alone. In response, Arup highlighted funding sources of between £3bn and £80bn and provided recommendations ranging from efficiency savings, increases in taxes and revenues from increased fiscal devolution.

Arup’s study provides evidence that the GLA has the competency to govern at a city level and allowed the GLA to deliver their London Infrastructure Plan 2050 in December 2014. Strategically, this places London ahead of the game. The city is prepared for growth. Other cities will be closely watching how London’s plans evolve.